Financing Land in WNC? Why Local Lenders Are Your Best Bet
Here are your best options for buying land in Asheville, Hendersonville, Brevard, and beyond.
Imagine a winding gravel drive leading to your future cabin. Mornings with fog drifting over the ridgeline. Evenings around a fire pit under the stars. Maybe it’s a homestead. Maybe it’s your retirement retreat. Or maybe it’s just a piece of mountain peace with your name on it.
If that vision starts with buying land, you’re not alone. More buyers across Western North Carolina (WNC) are looking beyond the traditional housing market and focusing on raw and rural property. But as we explained in our last article on buying land in WNC, buying land without a home on it isn’t as simple or straightforward as it sounds.
That’s because buying land comes with its own challenges, and financing is one of the biggest. Land loans are harder to qualify for, often require higher down payments, and typically demand a clear plan for how you intend to use the property.
And here’s one detail that can make all the difference: Where you get your land loan can matter just as much as what type of loan you choose.
National lenders often shy away from financing rural, sloped, or unimproved parcels. Local lenders, on the other hand, are intimately familiar with the region’s terrain, zoning, and infrastructure. They live and lend here. And that makes a big difference.
Local lenders understand WNC better, pure and simple
Not all land is created equal. Every parcel is unique. That’s especially true in a region like ours, where one lot might have road access and water hookups, and another—just a mile away—might need a new driveway, septic permit, and well.
Local banks and credit unions are more familiar with:
The zoning quirks of mountain counties.
Slope and soil challenges.
Easement issues and private road access.
The long lead times that sometimes come with building in rural areas.
Because of that, they’re more likely to approve your loan, offer flexible terms, or work with you to finance a property that national lenders won’t touch.
What makes a local loan different?
When you work with a local lender, the process can feel more personal. And more realistic. While requirements vary, you can generally expect lenders to want:
A usage plan — most lenders want to know how and when you’ll use the land.
A strong credit score — most require 680 to 700 or higher, especially for raw or unimproved land.
A substantial down payment — typically 15% to 35% depending on land type. Improved land may qualify at the lower end, while raw land usually requires 30% or more.
A shorter term — land loans are often written for 5 to 20 years, though some lenders offer up to 25 years for agricultural parcels. Balloon payments may apply.
You might also be able to take advantage of bundled loan products, like construction-to-permanent loans, which local lenders are more likely to offer than national banks.
🔍 Many land buyers in WNC pay cash, particularly for smaller parcels or properties under $50,000. It’s not always possible, but it does explain why financing can feel more limited or complex.
💬 Not finding the right loan? Some sellers in WNC offer direct financing, especially for raw or hard-to-finance land. Known as seller financing, this option lets the seller act as the lender, often with more flexible terms. Seller land sales aren’t always listed publicly, so it’s worth asking around. Just make sure you involve a WNC real estate attorney to protect yourself.
Which local lenders offer land loans in WNC?
Several strong regional institutions offer land loans for Western North Carolina buyers. Each specializes in a specific type of property, from residential parcels to working farms.
SECU (State Employees’ Credit Union)
SECU offers competitive rates and a straightforward application process, but eligibility is limited to North Carolina state employees, their families, or other qualifying members. If you're eligible, it’s a top-tier option for financing land with long-term potential.
Carolina Farm Credit
If you’re buying land for agricultural use, recreation, or even future retirement, Carolina Farm Credit is one of the best-known names in the region. They finance raw and improved land, offer fixed or variable rates, and provide loan terms up to 25 years. Most loans require 25% or more down.
AgSouth and AgCarolina Farm Credit
These regional lenders specialize in rural lending. They offer flexibility for land not immediately ready for construction and understand what it takes to finance wooded acreage, sloped lots, and multi-acre tracts outside city limits.
AgSouth and AgCarolina Farm Credit often offer loans that allow for:
Agricultural or personal use.
Long amortization schedules.
Custom payment plans.
It might be best for you if you’re not rushing to build and want to lock in a property while it’s available.
Mountain Credit Union, Truliant, and other community lenders
Smaller credit unions and regional banks can also be great options, especially for parcels of less than 10 acres or land with existing utilities. These lenders may be more lenient on property location, offer flexible terms, and be willing to work with you if you plan to build within a few years.
Pro tip: Even if your favorite credit union doesn’t advertise land loans on its website, call and ask. Some products are available only through direct inquiry.
Questions to ask your lender before you apply
Have your questions ready before speaking with a lender. Being prepared with questions will help you compare options and avoid surprises later. Ask:
Do you finance raw, unimproved, or improved land?
What’s your required down payment for each land type?
Do you offer construction-to-permanent loans?
Can I use the loan for a second home or future retirement property?
What’s your typical loan term and interest rate?
Will you finance land that doesn’t yet have utilities or road access?
Do you have a minimum or maximum loan amount?
Take the time to compare lenders. You could save thousands in fees and interest.
Want to understand how land loans actually work?
This article is part of our Buyer’s Guide to Land in Western North Carolina—our larger guide to land financing, land types, and how to prepare for the real costs. If you’re at the beginning of your land buying journey, start there.
Closing thought: Look for a lender—and a real estate agent—who knows the mountains
Buying land in WNC is about more than location. It’s about preparation. And the right lender can make or break your buying experience. So can the right Realtor®.
I’m Craig Gregoire. If you're not sure where to start, email me or give me a call. I’m happy to discuss your land purchase with you and connect you with local lenders. I can also help you compare terms and discuss what type of land best fits your vision.
